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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of certain group benefits by the |
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Teacher Retirement System of Texas; making an appropriation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 1575, Insurance Code, is |
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amended by adding Section 1575.307 to read as follows: |
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Sec. 1575.307. CERTAIN MONEY APPROPRIATED TO FUND. (a) |
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Notwithstanding Section 1575.303 and subject to Subsections (b) and |
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(c), the trustee shall use the money appropriated to the fund by the |
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Act enacting this section to: |
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(1) reduce deductibles for health benefit plan |
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coverage provided under a basic plan; |
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(2) provide some level of first-dollar coverage for |
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prescription drugs; |
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(3) provide subsidies for the contributions required |
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for: |
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(A) coverage for retirees, dependents, surviving |
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spouses, or surviving dependent children who are eligible for |
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Medicare; or |
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(B) dependent coverage; or |
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(4) otherwise reduce out-of-pocket costs for health |
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benefit plan coverage provided under the group program. |
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(b) The trustee shall use $250 million of the appropriation |
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described by Subsection (a) for each of the following plan years: |
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2018, 2019, 2020, and 2021. |
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(c) The trustee may not use the appropriated money described |
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by Subsection (a): |
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(1) to offset the amount of the required state |
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contribution under Section 1575.201 or 1575.202, the active |
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employee contribution under Section 1575.203, or the public school |
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contribution under Section 1575.204; or |
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(2) for any purpose not authorized by Subsection (a). |
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(d) The trustee shall consult with actuaries to determine |
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how to discharge the trustee's obligations under this section for |
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each plan year. The trustee may allow and consider public comment |
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regarding the use of the appropriated money described by Subsection |
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(a) for purposes of this section. |
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(e) Not later than December 1 of each year, the trustee |
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shall prepare a report detailing the trustee's intended use of the |
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appropriated money described by Subsection (a) for the following |
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plan year and submit the report to the governor, the lieutenant |
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governor, the speaker of the house of representatives, the chair of |
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the Senate Committee on State Affairs, the chair of the House |
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Committee on Pensions, the chair of the Senate Committee on |
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Finance, the chair of the House Committee on Appropriations, and |
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the Legislative Budget Board. |
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(f) This section expires December 31, 2023. |
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SECTION 2. Section 1575.452, Insurance Code, is amended to |
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read as follows: |
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Sec. 1575.452. ANNUAL REPORTS [REPORT]. (a) Not later than |
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the 180th day after the last day of each state fiscal year, the |
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trustee shall submit a written report to the department concerning |
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the group coverages provided to and the benefits and services being |
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received by individuals covered under this chapter. |
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(b) Each year, the trustee shall prepare a written report |
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containing: |
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(1) projected health care cost trends and predicted |
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expenses related to group coverages and the group program for the |
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following plan year; |
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(2) information relevant to determining cost |
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increases for the group program, including claims history, medical |
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utilization, pharmacy cost information, and network discounts |
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applied to the group program; and |
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(3) estimates of the effect on the funding sufficiency |
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of the group program of an increase in the state contribution under |
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Section 1575.202 to 2 percent, 2.25 percent, 2.5 percent, 2.75 |
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percent, and 3 percent of the salary of each active employee. |
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(c) Not later than December 1 of each year, the trustee |
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shall submit the report described by Subsection (b) to the |
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governor, the lieutenant governor, the speaker of the house of |
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representatives, the chair of the Senate Committee on State |
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Affairs, the chair of the House Committee on Pensions, the chair of |
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the Senate Committee on Finance, the chair of the House Committee on |
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Appropriations, and the Legislative Budget Board. |
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SECTION 3. (a) In this section: |
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(1) "Active employee" has the meaning assigned by |
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Section 1575.002, Insurance Code. |
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(2) "Dependent," "surviving dependent child," and |
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"surviving spouse" have the meanings assigned by Section 1575.003, |
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Insurance Code. |
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(3) "Retiree" has the meaning assigned by Section |
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1575.004, Insurance Code. |
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(b) The Teacher Retirement System of Texas shall conduct a |
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study of the feasibility of: |
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(1) combining into a single group health benefit plan |
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active employees, retirees, dependents, surviving spouses, and |
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surviving dependent children who are not eligible to enroll in |
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Medicare; and |
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(2) creating a group health benefit plan for active |
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employees, retirees, dependents, surviving spouses, and surviving |
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dependent children who are eligible to enroll in Medicare. |
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(c) Not later than January 1, 2019, the Teacher Retirement |
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System of Texas shall prepare and submit a report of the results of |
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the study conducted under Subsection (a) of this section together |
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with recommendations for legislation, if appropriate, to the |
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governor, the lieutenant governor, the speaker of the house of |
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representatives, the chair of the Senate Committee on State |
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Affairs, the chair of the House Committee on Pensions, the chair of |
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the Senate Committee on Finance, the chair of the House Committee on |
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Appropriations, and the Legislative Budget Board. |
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SECTION 4. The amount of $1 billion is appropriated from the |
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economic stabilization fund to the retired school employees group |
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insurance fund established under Section 1575.301, Insurance Code, |
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for distribution by the Teacher Retirement System of Texas as |
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provided by Section 1575.307, Insurance Code, as added by this Act. |
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SECTION 5. (a) Subject to Subsection (b) of this section: |
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(1) this Act takes effect immediately if it receives a |
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vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution; and |
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(2) if this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect on the 91st day after the |
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last day of the legislative session. |
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(b) This Act takes effect only if it receives a vote of |
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two-thirds of the members present in each house of the legislature, |
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as provided by Section 49-g(m), Article III, Texas Constitution. |